FORM 8-K
CURENT REPORT
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): September 24, 1999
Commission file number 1-11023
E'TOWN CORPORATION
(Exact name of registrant as specified in its charter)
New Jersey 22-2596330
(State of incorporation) (I.R.S. Employer Identification No.)
600 South Avenue
Westfield, New Jersey 07090
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (908) 654-1234
Commission file number 0-628
ELIZABETHTOWN WATER COMPANY
(Exact name of registrant as specified in its charter)
New Jersey 22-1683171
(State of incorporation) (I.R.S. Employer Identification No.)
600 South Avenue
Westfield, New Jersey 07090
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (908) 654-1234
Item 5. Other Events
Elizabethtown Water Company (the Company or Elizabethtown), the principal
operating subsidiary of E'town Corporation (NYSE:ETW) took its primary water
treatment plant (the Raritan-Millstone Plant) out of service on Thursday,
September 16, 1999 as a result of flooding from Tropical Storm Floyd. Until
approximately noon on Monday, September 20 the Company had difficulty
maintaining adequate water pressure in portions of its distribution system as
the Company's secondary water treatment plant (the Canal Road Plant) was
supplying the predominant portion of the water needs of the Elizabethtown
customers. Overall system production levels were substantially less than
normal. Customers in portions of a few municipalities were without water
service for a period of up to three days.
During this time the Company took the following actions to help preserve
water pressure in the distribution system: 1) minimized the amount of water
supplied to wholesale customers, 2) solicited cooperation from large
industrial customers to voluntarily reduce their consumption, 3) notified the
public of the need for significant conservation through television and radio
interviews, periodic press releases, newspaper ads and 24-hour live telephone
response 4) substantially increased production from the Canal Road Plant and
Company-owned wells and 5) purchased water from adjacent systems. In
addition, due to significant reductions in water pressure throughout various
sections of the distribution system, the Company recommended, as a
precautionary measure, that all customers should boil water for a minimum of
three minutes if that water was to be ingested. Furthermore, the Company has
maintained constant communications with regulatory agencies as well as
Federal, State and local emergency response units.
Late on Monday, September 20, the Company began producing 20 million gallons
per day (mgd) of water from its Raritan-Millstone Plant. On Thursday
September 23, the Raritan-Millstone Plant's output increased to 40 mgd;
average production at the Raritan-Millstone Plant at this time of year is
approximately 104 mgd. As of the time of this filing the Company continues to
make progress in repairing facilities at the treatment plant with the goal of
adding additional treatment capacity in the next several days. Businesses
have been notified that they may gradually resume normal operations.
Elizabethtown has not yet resumed sales to wholesale customers.
The recommendation by the Company to boil all water that is ingested remains
in effect as a precautionary measure and the Company expects to withdraw this
recommendation in the near future. Water tests of samples taken throughout
the service territory (including the areas that experienced low water
pressure) by the Company and the New Jersey Department of Environmental
Protection indicate that all water is free of bacterial contamination.
The Company is incurring additional expenditures in order to repair and
replace equipment damaged by the flood and to respond to inquiries by
customers, regulatory bodies and the media. The Company believes that a
substantial amount of these expenditures will be recoverable through
insurance. Costs that are not recoverable through insurance will be either
capitalized or deferred and subsequently requested, of the New Jersey Board
of Public Utilities, to be recovered in rates.
The Company experienced a significant reduction in water consumption since
the Raritan-Millstone Plant was taken out of service. The Company does not
carry business interruption insurance coverage. Elizabethtown anticipates
that total production of water will approach levels that are considered
normal within the next week and that large industrial and commercial
customers will resume normal water consumption patterns by that time.
Although residential customers are increasing their water consumption as
consistent water pressures return, it cannot be determined when residential
customers will completely resume their normal water consumption patterns.
Assuming return to normal operations within the near future and recovery of
costs as described above, the Company does not currently expect this event to
have a material adverse effect on its financial condition, cash flows or
results of operations.
E'TOWN CORPORATION
ELIZABETHTOWN WATER COMPANY
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: September 24, 1999
E'TOWN CORPORATION
ELIZABETHTOWN WATER COMPANY
/s/ Gail P. Brady
________________________________
Gail P. Brady
Treasurer
/s/ Dennis W. Doll
________________________________
Dennis W. Doll
Controller